Lord Hussey, better known as Marmaduke Hussey, said the corporation should concentrate and invest in the mainstream channels.

Lord Hussey told the Lords programme makers had too little influence in the BBC and he said people and programmes were "very much more important" than policies and processes.

He criticised the amalgamation of television and radio resources and said £4m spent on the continuous news service, News 24, would have been better spent securing the rights to English test cricket.

'Budgets squeezed'

Lord Hussey said: "The future of the BBC lies in the minds and skills of those programme makers whose budgets are now being dangerously squeezed".

Lord Hussey warned the BBC not to get drawn into a battle with Rupert Murdoch

He also warned the BBC not to get drawn into a battle with Rupert Murdoch's media empire.

Lord Hussey said Mr Murdoch's was one of the "roughest, toughest and richest companies" in the world and he said the BBC did not have the "ruthless, competitive spirit" needed to defeat Sky.

Changed world

The BBC responded to Lord Hussey's attack with a statement rebuffing his criticisms.

It said: "Much has happened in the media world in the three years since Lord Hussey left, but the BBC remains single-minded in offering programmes on radio and television which the market alone will not provide.

"We are entirely committed to carrying forward the public service principles top which Lord Hussey refers, ensuring that licence fee payers are not excluded from the benefits of new technology."